Rethinking Inequality in Latin America – Project Syndicate
Inequality in the region is neither as predictable nor as static as many believe:
“Some countries, such as Brazil, Colombia, Guatemala, Honduras, and Panama, have extremely high income inequality, whereas others, including Bolivia, the Dominican Republic, El Salvador, and Uruguay, have income disparities similar to that of the United States…
“A study tracking the evolution of inequality since 1980 until today shows that this broad pattern hides significant variations. For example, Bolivia, Brazil, Chile, and Peru significantly reduced inequality between 1980 and 2010, even though their levels remain high compared to other countries at a similar stage of development. By contrast, inequality has steadily increased in Costa Rica over this period. The fatalistic assumption that the entire region is cursed by structural inequality that is impervious to policy interventions should be abandoned…
“There is also new evidence that the opportunities and potential income of children in the region tend to mirror that of their parents, implying low levels of intergenerational mobility. One study shows that between 44% (Argentina) and 63% (Guatemala) of current income inequality in nine LAC countries is explained by “inherited” factors. Among the variables that contribute to the persistence of inequality across generations are being born in a low-income areas, belonging to an ethnic minority, and having parents with limited schooling or low-paying occupations. But here, again, the picture that emerges is more nuanced. In countries with a history of slavery or oppressing indigenous peoples, racial or ethnic factors predict much lower levels of intergenerational social mobility.”
Millennials on course to become ‘richest generation in history’ – Guardian
“Those born between 1981 and 2000 are in line for a ‘seismic’ windfall over the next 20 years, according to research by real estate agent Knight Frank, thanks to the property assets accumulated by the generations before them. While the distribution of wealth may be shifting between world regions, an even bigger shift is happening between generations.”